How, exactly, could any company make a "profit" loaning money at 1%, while also dishing out truckloads of cash to bail out and shore up every other company?
Fannie & Freddie are technically private corporations, so any profits go to the shareholders. I just looked up both companies on finance.yahoo.com and the US government is not listed as a major shareholder. Someone please correct me if I’ve overlooked something.
The Fed earns money on the Treasuries it owns. This pays for its expenses and the excess goes to the Treasury. It really doesn’t ‘dish out truckloads of cash’, it manages the ratio of currency available to the banking system by buying and selling Treasuries. The bailouts it has arranged involve getting private sector firms to take over failing companies.